There have been articles in the media on the future passage of the Women's Reservation Bill stating that the Bill will have to be ratified by state legislatures before it is signed into law by the President. Our analysis indicates that ratification by state legislatures is not required. We state the reasons below: This Bill amends the Constitution. It (a) amends Article 239AA, Article 331, and Article 333, and (b) inserts Article 330A, Article 332A, and Article 334A. In doing so the Bill:
Article 368 regulates the procedure for amending the Constitution. It states that the ratification of the state legislatures to a constitutional amendment is required in the following cases: a. If there is a change in the provisions regarding elections to the post of the President of India. b. If there is a change in the extent of the executive power of the centre or the state governments. c. If there is any change in the provisions regarding the Union judiciary or the High Courts. d. If the distribution of legislative powers between the centre and the states is affected. e. If any of the Lists in the Seventh Schedule is affected. f. If the representation of the states in the Rajya Sabha is changed. g. Lastly, if Article 368 itself is amended. None of these provisions are attracted in the case of the Women's Reservation Bill. The Parliament recently extended the reservation of seats for SCs, STs and Anglo-Indians in Lok Sabha and Legislative Assemblies by another ten years. Article 334 was amended to state that such reservation "will cease to have effect on the expiration of a period of seventy years from the commencement of the Constitution." The 109th Amendment Bill was passed by both Houses of Parliament and did not require the ratification of the states before being signed into law by the President. It follows that if Bills amending provisions for reserving seats for SCs and STs don't need ratification by state legislatures, a bill reserving seats for women does not need ratification either. Thus Article 368 very clearly lays down situations in which state legislatures have to ratify a piece of legislation before it can receive the assent of the President.
The Insolvency and Bankruptcy Code, 2016 is listed for passage in Rajya Sabha today. Last week, Lok Sabha passed the Code with changes recommended by the Joint Parliamentary Committee that examined the Code.[1],[2] We present answers to some of the frequently asked questions in relation to the Insolvency and Bankruptcy Code, 2016. Why do we need a new law?
As of 2015, insolvency resolution in India took 4.3 years on an average. This is higher when compared to other countries such as United Kingdom (1 year) and United States of America (1.5 years). Figure 1 provides a comparison of the time to resolve insolvency for various countries. These delays are caused due to time taken to resolve cases in courts, and confusion due to a lack of clarity about the current bankruptcy framework. What does the current Code aim to do? The 2016 Code applies to companies and individuals. It provides for a time-bound process to resolve insolvency. When a default in repayment occurs, creditors gain control over debtor’s assets and must take decisions to resolve insolvency within a 180-day period. To ensure an uninterrupted resolution process, the Code also provides immunity to debtors from resolution claims of creditors during this period. The Code also consolidates provisions of the current legislative framework to form a common forum for debtors and creditors of all classes to resolve insolvency. Who facilitates the insolvency resolution under the Code? The Code creates various institutions to facilitate resolution of insolvency. These are as follows:
What is the procedure to resolve insolvency in the Code? The Code proposes the following steps to resolve insolvency:
What are some issues in the Code that require consideration?
A version of this blog appeared in the Business Standard on May 7, 2016.
